[PEN-L:8764] Re: Re: Re: Re: RE: Re: the NFL and urban development

["Henry C.K. Liu" <hliu@xxxxxxxxxxxxxx>]

Correction:
So the solution is less governmment but a more responsive government controlled by the
people.

It should read:

So the solution is NOT less governmment but a more responsive government controlled by
the people.

"Henry C.K. Liu" wrote:

> Is this an example of the New Left merging with the Old Right?
> The Minn Fed study was classic conservative free market oriented, argued from the
> perspective that a.) public subsidies distort business decisions and resource
> allocation in economic terms, b) government are not good in identifying business
> opportunities and c) subsidies has high opportunity cost on competing public
> welfare needs.
>
> These arguments from the Minn Fed are not honest. Here are the counter arguments:
> a) Business decisions are never made in a vacuum of government policy anyway, so
> distortion is sytemic already. The very existence of the Fed and the need for a
> monetary policy illustrate that point.
> b) As inefficient as government is, it is the only institution to openly assume
> macroeconomics policy responsibility on behalf of the whole public. So the solution
> is less governmment but a more responsive government controlled by the people.
> c) The assumption that refusing certain subsidies will free funds for other more
> deserving subsidies is not true, because the American system of public finance has
> segregated pockets for each type of subsidies.
>
> Much opposition to subsidies for the NFL on this thread has been concentrated on
> the two points:
> a) such subsidies produce little economic benefit and
> b) whatever benefit they produce goes to the wrong parties.
> c) the money should be spent on other more deserving needs.
>
> Item a) is highly controversial.
> Item b) is true, but the solution is to socialized the benefit more equitably as
> the original BRC article demanded.
> ITem c) is a non issue, because the subsidy funds are not just sitting in a surplus
> account for competitive claim. Such subsidies are generally supported by
> specifically voted taxes that otherwise would not be available.  Most stadium
> subsidies come from new hotel ocupancy and restaurant sales taxes.  In other word,
> they are new additional economic activities, not horizontal transfers.
>
> The Left should learn that opposition based on a futile spoiler strategy is not
> productive on micro issues, even if such strategy may be useful on macro levels.
> It seems to me that a strategy to elevate the disfranchised class into true player
> status on urban sport franchises would be more useful than a spoiler opposition
> which in any event ususaly fails.
> But I can see that I am in the minority on this issue and not because I am on the
> political right.
>
> As for the Northwest Airline situation, the importance of the airline to the state
> and the regional economy  is undeniable.  If Northwest did not have public support,
> and was forced into bankruptcy and become absorbed by another airline, the region
> will no doubt be not as well served in this deregulated climate.  If fact, Carter's
> deregulation moves were an extremely right-wing policy in the name of populist
> intentions.  Deregulation favors the powerful over the weak.  It is not a policy
> that leftist should support.
> The Right recognizes that the people will eventually gain control of government,
> that is why the Right wants government out of the economy.  There is nothing wrong
> with subsidies to generate economic growth. The target for the Left is a better
> deal for the poor from such growth, not growth itself.
> The left is very confused these days and often myopic.
>
> Henry C.K. Liu
>
> Doug Henwood wrote:
>
> > Michael Perelman wrote:
> >
> > >LeRoy has gathered wonderful statistics about the subsidy per job
> > >that has been
> > >given by state and local gov'ts.  Even the Fed. Reserve Bank of Minn. has come
> > >out against such subidies in general
> >
> > There's a section of their website devoted to the topic -
> > <http://woodrow.mpls.frb.fed.us/sylloge/econwar/index.html>. I think
> > the Bank got interested when a libertarian staffer got irritated by
> > the huge and pointless state subsidy of Northwest Airlines in the
> > early 1990s.
> >
> > Doug